The ongoing situation of people in mortgage arrears is unacceptable, given the scale of the continuing crisis and the hands-off approach of the Government and the Central Bank to the resolution of the issues facing thousands of families, whose entire futures are in jeopardy and whose lives are paralysed by the lack of sustainable solutions. Since Central Bank targets have come into play, approximately 13,000 letters have issued from the AIB, Bank of Ireland and Ulster Bank, initiating the potentially devastating prospect of eviction and repossession. That figure dwarfs all other potential solutions such as loan extensions, interest-only deals or split mortgages. Yesterday representatives of Ulster Bank appeared before the Joint Committee on Finance, Public Expenditure and Reform and acknowledged that over 4,000 owner occupiers were in the legal process and admitted frankly that up to 1,500 had a realistic chance of having their homes repossessed. The Taoiseach said some months ago that that was the last resort and something the Government did not want to countenance. The inconsistency of the approach, depending on the lender, is unacceptable. AIB, Bank of Ireland and Permanent TSB have dramatically different approaches with different outcomes. A person who borrows €200,000 in a split mortgage from AIB could be €57,000 better off than someone with the same mortgage from Bank of Ireland. The difference is extraordinary. It is not acceptable that a customer depends on pot luck, whether with Bank of Ireland, Permanent TSB or AIB, which determines that there is a massive difference in how that one option plays out. Eighteen months after the personal insolvency regime was introduced and all of the targets set by the Central Bank, the situation is not satisfactory by any stretch of the imagination and not sustainable for many families. It is time for a fundamental review of the approach to this issue and for the Government and the Central Bank to be far more hands-on, to take a more standardised and consistent approach to the issue of mortgage arrears.

I thank the Deputy for his question. There is no doubt that one of the harshest and dire consequences of the economic collapse from 2008 to 2011 was the indebtedness of many of our fellow citizens, particularly couples who could not afford to pay their mortgages. The Government has addressed this issue with the very strong assistance of the Central Bank. There has been agreement across the House on the approach where the Central Bank set quarterly targets to resolve the issue of impaired mortgages and these are being met. In round terms, sustainable solutions have been put in place for 54,000 households which cannot cope with their mortgage arrears. That is significant progress and I hope progress will continue. That is why I am so pleased that the Joint Committee on Finance, Public Expenditure and Reform has called in all of the main lenders this week and is putting them through their paces. Representatives of Ulster Bank came in yesterday. Representatives of Permanent TSB are in this morning. I understand it states it has offered new arrangements to 60% of its mortgage holders and it seems to be leading in exceeding targets. It is very important that they are met. We will continue to drive them and I know the committee will pressurise the lending institutions to ensure they keep to them.

The other side of indebtedness is the buy-to-let sector, in which the banks have made significant progress. Bank of Ireland claims to have offered solutions to 90% of its buy-to-let customers, while AIB claims it has offered solutions to 65%. It is one of the big problems impinging on couples’ personal lives, many of whom are young. It is a difficult issue and a drag and an inhibition on the economy because people coping with so much personal debt are not fully participating in it. We must continue to drive forward. There is a range of solutions. It is not pot luck. The Central Bank has set down a protocol, set the targets and agreed the range of acceptable solutions. There is a standardisation of approach across the banks. Within the range of options available to the lenders, one bank moves more strongly in one direction than another. There are variations within an agreed scheme. I acknowledge the seriousness of the issue, but steady progress is being made and with everybody’s help, we continue to drive forward.

The variation is stark. For example, on the split mortgage it is as wide as €57,000. It could not be acceptable that, depending on which bank gave the mortgage, one could be better off by €57,000 in the application of a single option on the split mortgage. It should not be reduced to how lucky one is to happen to have a split mortgage with AIB as opposed to with Bank of Ireland or Permanent TSB.

The Minister for Justice and Equality said he would review the personal insolvency regime after 18 months. There have been only four cases. It has had a negligible impact on the mortgage arrears crisis. The Central Bank targets seem to have led to an attack on the mortgagee rather than the crisis. It has led to a ramping-up of legal actions and up to 13,000 legal letters have been sent. They have a terrible impact on families who receive them. That aspect needs to be reviewed.

The Minister spoke about cross-party consensus. My colleague, Deputy Michael McGrath, made the point at the meeting of the Joint Committee on Finance, Public Expenditure and Reform that it was very worrying that 30% of Ulster Bank’s customers who were in arrears for over 90 days were involved in the legal and repossession process. Deputy Ciarán Lynch who chairs the committee has said Ulster Bank is “very, very opposed to any debt removal that is based on people remaining in their home.” The central objective of the Government as articulated in the House, to protect people in their family homes, is falling apart at the seams. The banks have a very determined focus, in response to the targets, on starting a significant process of repossession. The first bank to appear before the committee yesterday stated that up to 1,500 family homes could be repossessed and that that was a realistic prospect. Is it not time for a more fundamental review of how the Government and the Central Bank have approached this issue, with a view to making the protection of the family home the number one priority in resolving and responding to the difficulties people undoubtedly face?

It is the clear objective of the Government that persons in mortgage distress should continue to live in the family home and that from the range of solutions available, solutions other than repossession should apply. It is also true that unless repossession is part of the legal system, there will be no mortgage market because nobody will lend unless there is legal potential to realise the collateral. It is part of the legal system. The Government’s relationship with each bank differs.

The Minister should take them on.

While Ulster Bank is regulated by the Central Bank, we do not have a shareholding in it. We do, however, have 99% of the shares in AIB and 14% of the shares in Bank of Ireland. I read in this morning’s newspapers what the chief executive of Ulster Bank had said at the committee yesterday. It was not as blunt as Deputy Micheál Martin represented it.

What he said was that the purpose of legal letters to many customers was to get them to engage, because solutions cannot be brought forward unless they engage. The purpose was not to proceed to repossession but to get engagement in the process when the letters that had been written previously were being ignored by customers.

I do not accept that.

Sorry; we are over time.

I am simply telling the Deputy what was reported. I assume it was an accurate report of the committee's proceedings.

I know of many people who have been trying to get in touch with the banks without success.

Please, Deputy; we are over time.

When the Deputy quotes people he should quote them in context and give the full quotation. Selectively quoting to make some kind of political point is not helpful.

The Minister for Finance should not have to read the newspaper to know what is going on.

It is the Government's policy that people will continue to live in their family homes and that solutions other than repossession will be put in place. It is also our policy that the lending institutions that have entered into agreements with the Central Bank will keep those agreements and meet their targets. To date, they are doing so, and 54,000 permanent solutions have been offered. We will continue to drive that agenda. I am delighted that the Joint Committee on Finance, Public Expenditure and Reform is scrutinising the progress being made by the lending institutions. Without being harsh on the lending institutions, I am glad that members of the committee are putting pressure on them to continue meeting their targets.